grace period

noun

Definition of grace period

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Facebook tightened access in 2014 and gave pre-existing apps a one-year grace period to comply with the new rules. — Deepa Seetharaman, WSJ, "Facebook’s Latest Problem: It Can’t Track Where Much of the Data Went," 27 June 2018 The language of the bill, however, does not include a grace period or any instruction for how residents can dispose of their devices. — Matt Vasilogambros, The Christian Science Monitor, "With lack of incentives, few Americans are giving up their bump stocks," 21 May 2018 China has lent the company roughly $50 billion and a grace period on repayment of some loans was agreed to in 2016 when oil prices were around half of today’s level. — Spencer Jakab, WSJ, "Venezuela’s Oil Meltdown Is Getting Worse," 13 May 2018 The new Georgia Hands Free law will go into effect July 1 and, while the Loganville Police Department are big supporters of the law, the agency has chosen to utilize a grace period for local drivers. — Karen Huppertz, ajc, "Loganville police offer second chances," 30 June 2018 The agency wouldn’t confirm the extension date or a reason for the grace period. — Lisa Maria Garza, OrlandoSentinel.com, "U.S. Rep. Darren Soto's longshot tactic aims to stall deportation of undocumented wife of Polk County Marine veteran," 28 June 2018 The grace period will apply to major allies such as the European Union and Canada. — Lucinda Shen, Fortune, "U.S.-China Trade Tariffs Could Set Back Much of Trump Job Gains, Says Study," 1 May 2018 Taxes were due July 1 and, by state law, interest charges will apply following a 30-day grace period to any bills not paid on time. — Bill Leukhardt, Courant Community, "Plainville Tax Increase Effective This Month," 3 July 2018 Sunday marked the end of California dispensaries' grace period before new restrictions on THC limits, packaging and labeling took effect. — Benjy Egel, sacbee, "Is your favorite dispensary out of marijuana? Blame this new state regulation," 2 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'grace period.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

18 Aug 2018

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The first known use of grace period was in 1907

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More Definitions for grace period

grace period

noun

Financial Definition of grace period

What It Is

A grace period is a period of time, usually about 10 days, during which a past due amount can be paid with little or no penalty.

How It Works

Let's assume your credit card payment is due on December 15. You forget to make the payment. On December 20, you remember. By then, though, it's too late. Your bill is past due.

However, if your account has a grace period, you can make the payment and the creditor might not assess a late fee or other penalty.

Why It Matters

Past-due bills often incur late fees, higher interest rates, penalties and other charges. Worst of all, the creditor might report the late payment to the credit reporting agencies, leaving a black mark on your credit rating (and even lowering your credit rating). In some cases, a bill get so past due (say, 90 or 180 days), that the creditor considers the account in default and may charge off the balance. A grace period gives customers a chance to catch up quickly before it's too late. After that point, the lender might assign or sell the account to a collection agency, which will try to collect the balance.

Source: Investing Answers

grace period

noun

English Language Learners Definition of grace period

: an amount of extra time that someone is given to pay a bill, finish a project, etc.

See the full definition for grace period in the English Language Learners Dictionary

grace period

noun

grace pe·ri·od

Legal Definition of grace period

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a : a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b : a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

— called also days of grace